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3. DraftKings
There’s been standout momentum at DraftKings over the past 12 months, with significant top- and bottom-line YoY gains, which were attributed earlier in the year to product enhancements and “prudent cost discipline and efficiency initiatives”. Sportsbook revenue and structural hold continue to head upwards, boosted by an in-play offering that has undergone UX upgrades of late, including live bet tracking. Bosses have hailed it the “best-in-class live betting product”. Live with its online sportsbook in 26 US jurisdictions and Canada’s Ontario province (plus igaming), the Boston-based operator is poised to add to this count by entering Missouri – the only state to launch sports betting in 2025 – on 1 December, when the market goes live. DraftKings was one of two companies (the other being Circa Sports) to be awarded untethered licences.
Online casino continues to shine too, with NGR up 23% YoY in Q2, largely fuelled by strong growth in active players. Co-founder and CEO Jason Robins emphasised on the Q2 earnings call that igaming is the “biggest opportunity and where the most growth lies”, while claiming DraftKings has managed to “own the table game space in a big way” by cross-selling sports bettors. The goal now is ramping up acquiring slots-first users who may consider the operator just a sports betting and DFS brand. DraftKings has experience here as it also owns Golden Nugget Online Casino and lottery courier Jackpocket, which offers icasino in New Jersey.
From an operational perspective, the firm has adopted an AI-first mindset, in a bid to drive efficiencies and scale. This has visibly manifested itself in accelerated product development and streamlined customer support. The knock-on effect, though, has been a near-total hiring freeze, as managers increasingly oversee AI agents rather than people.
Finally, as a pure-play US (plus Ontario) operator, DraftKings is particularly exposed to federally regulated prediction markets upending the state-regulated sports betting status quo. To remedy this predicament, it was announced in October the operator had acquired Commodity Futures Trading Commission-licensed Railbird for an undisclosed sum. The swoop fast tracks DraftKings’ entry into the space, with the upcoming standalone mobile product, DraftKings Predictions, set to offer sports event contracts in states where the firm doesn’t provide sports betting as of yet.
Financials: Revenue for H1 2025 increased 28% YoY to $2.9bn. Adjusted EBITDA leapt 168% to $403.3m, representing an EBITDA margin of 13.8%
Strategy & impact: Benefits from huge brand recognition in North America. Has invested of late in its live betting offering, besides going after acquiring slots-first players, and is soon to offer prediction markets
Geographic reach: The US and Ontario. Robins said earlier this year it would be “irresponsible” not to consider overseas expansion, yet cautioned such a move could prove a distraction
Influence & leadership: Went from the leading DFS firm to one of the biggest names in legal US online gambling. Remains at the forefront of the US industry’s responsible gaming (RG) efforts
If you are lucky enough to be ranked a Power 50 operator, secure your place at the Power 50 Summit next April
The post EGR Power 50 2025: 3 – DraftKings first appeared on EGR Intel.
Proudly sponsored by: 3. DraftKings There’s been standout momentum at DraftKings over the past 12 months, with significant top- and bottom-line YoY gains, which were attributed earlier in the year to product enhancements and “prudent cost discipline and efficiency initiatives”. Sportsbook revenue and structural hold continue to head upwards, boosted by an in-play offering that
The post EGR Power 50 2025: 3 – DraftKings first appeared on EGR Intel.